If the Average Aggregate Inventory Value Is $45,000 and the Cost

question 11

Multiple Choice

If the average aggregate inventory value is $45,000 and the cost of goods sold is $10,000, which of the following is weeks of supply?

• A) 45,000
• B) 234
• C) 120
• D) 23.4
• E) 4.5

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Definitions:

General Agreement on Tariffs and Trade (GATT)

The international agreement reached in 1947 in which 23 nations agreed to eliminate import quotas, negotiate reductions in tariff rates, and give each other equal and nondiscriminatory treatment. It now includes most nations and has become the World Trade Organization.

World Trade Organization

An international organization that regulates international trade and ensures that trade flows as smoothly, predictably, and freely as possible.

Rent-Seeking Activity

Efforts by individuals or firms to gain unfair economic benefits through manipulation or exploitation of the regulatory or political environment, without contributing to productivity.